Annual Report 2021

Attracting and retaining talent

We believe that curiosity can make great things happen. Therefore, we aim to provide an environment that gives our employees plenty of scope for creativity and sparks their desire to innovate. Our employer brand communicates this mindset to the outside world. Through our slogan “Bring Your Curiosity to Life”, we show applicants what they can expect and what they can contribute when they join our company.

Diversity, equity and inclusion are integrated in our attraction and selection activities. We train our recruiters to avoid unconscious bias during interviews and ensure that all new employer branding campaigns follow diversity criteria.

In 2021, we started using a new technology to support gender-neutral language, for example when creating job advertisements. Additionally, we included a dedicated “diversity” section in our interview guide, helping hiring managers to keep inclusivity top-of-mind.

We work across countries to understand cultural norms that allow our colleagues to bring their best selves to work. Attracting applicants with diverse backgrounds remains a top priority for us because we believe this gives us a competitive advantage as we expand our employee base.

Total number of employees1

As of Dec. 31

 

2018

 

2019

 

2020

 

2021 Group

 

2021 thereof: Merck KGaA, Darmstadt,
Germany

Total number of employees

 

51,749

 

57,071

 

58,127

 

60,348

 

8,081

Men

 

29,006

 

32,531

 

33,204

 

34,274

 

5,292

Women

 

22,743

 

24,540

 

24,923

 

26,074

 

2,789

1

The Group also has employees at sites that are not fully consolidated subsidiaries. These figures refer to all people directly employed by the Group and therefore may deviate from figures in the financial section of this report.

Employee age by region

As of Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

Number of employees

 

Worldwide

 

North America

 

Europe (including Germany)

 

Merck KGaA,
Darmstadt,
Germany

 

Asia-Pacific (APAC)

 

Latin America

 

Middle East and Africa (MEA)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Up to 29 years old

 

8,570

 

1,906

 

3,193

 

1,161

 

2,800

 

472

 

199

thereof: women

 

4,018

 

825

 

1,525

 

420

 

1,307

 

260

 

101

30 to 49 years old

 

34,974

 

6,615

 

15,416

 

4,458

 

9,669

 

2,323

 

951

thereof: women

 

15,268

 

2,841

 

7,076

 

1,505

 

3,776

 

1,161

 

414

50 or older

 

14,583

 

4,791

 

7,978

 

2,959

 

1,049

 

592

 

173

thereof: women

 

5,637

 

1,861

 

3,142

 

839

 

342

 

209

 

83

Average age

 

41.7

 

44.4

 

43.1

 

43.4

 

37.0

 

40.7

 

39.1

Total employees

 

58,127

 

13,312

 

26,587

 

8,578

 

13,518

 

3,387

 

1,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Up to 29 years old

 

9,129

 

2,219

 

3,341

 

1,125

 

2,912

 

482

 

175

thereof: women

 

4,359

 

961

 

1,598

 

415

 

1,437

 

265

 

98

30 to 49 years old

 

36,157

 

6,939

 

15,653

 

4,288

 

10,260

 

2,404

 

901

thereof: women

 

15,888

 

2,958

 

7,224

 

1,550

 

4,081

 

1,225

 

400

50 or older

 

15,062

 

4,912

 

8,223

 

2,668

 

1,113

 

643

 

171

thereof: women

 

5,827

 

1,881

 

3,276

 

824

 

356

 

231

 

83

Average age

 

41.6

 

43.9

 

43.1

 

43.1

 

37.1

 

40.8

 

39.7

Total employees

 

60,348

 

14,070

 

27,217

 

8,081

 

14,285

 

3,529

 

1,247

Internationality of employees

As of Dec. 31

 

20181

 

20192

 

2020

 

2021 Group

 

2021 thereof: Merck KGaA, Darmstadt,
Germany

Number of nationalities

 

136

 

139

 

141

 

142

 

89

Number of nationalities in management positions (Role 4 or above)

 

70

 

73

 

75

 

79

 

39

% of non-Germans in management positions (Role 4 or above)

 

64

 

64

 

66

 

66

 

13

1

In 2018, the position assessment had not yet been carried out for employees of all Sigma-Aldrich legal entities in Germany, or for employees of Allergopharma.

2

In 2019, the position assessment had not yet been carried out for employees of Versum Materials as well as of Allergopharma.

New employees

As of Dec. 31

 

2018

 

20191

 

2020

 

2021 Group

 

2021 thereof: Merck KGaA, Darmstadt,
Germany

Total number of new employee hires

 

7,129

 

7,924

 

6,669

 

8,960

 

504

by age group

 

 

 

 

 

 

 

 

 

 

up to 29 years old

 

2,967

 

3,432

 

2,889

 

3,679

 

263

30 to 49 years old

 

3,728

 

4,055

 

3,347

 

4,610

 

225

50 or older

 

434

 

437

 

433

 

671

 

16

by gender

 

 

 

 

 

 

 

 

 

 

Women

 

3,401

 

3,622

 

3,016

 

4,101

 

215

Men

 

3,728

 

4,302

 

3,653

 

4,859

 

289

by region

 

 

 

 

 

 

 

 

 

 

Europe

 

2,560

 

2,529

 

2,160

 

2,567

 

504

North America

 

1,524

 

1,733

 

1,789

 

2,855

 

not applicable

Asia-Pacific (APAC)

 

2,222

 

2,729

 

2,206

 

2,803

 

not applicable

Latin America

 

583

 

578

 

396

 

579

 

not applicable

Middle East and Africa (MEA)

 

240

 

355

 

118

 

156

 

not applicable

 

 

 

 

 

 

 

 

 

 

 

Rate of new employee hires2 (%)

 

14

 

14

 

11

 

15

 

6

by age group3

 

 

 

 

 

 

 

 

 

 

up to 29 years old

 

42

 

43

 

43

 

41

 

52

30 to 49 years old

 

52

 

51

 

50

 

51

 

45

50 or older

 

6

 

6

 

7

 

8

 

3

by gender3

 

 

 

 

 

 

 

 

 

 

Women

 

48

 

46

 

45

 

46

 

43

Men

 

52

 

54

 

55

 

54

 

57

by region3

 

 

 

 

 

 

 

 

 

 

Europe

 

36

 

32

 

32

 

29

 

100

North America

 

21

 

22

 

27

 

32

 

not applicable

Asia-Pacific (APAC)

 

31

 

34

 

33

 

31

 

not applicable

Latin America

 

8

 

7

 

6

 

6

 

not applicable

Middle East and Africa (MEA)

 

3

 

5

 

2

 

2

 

not applicable

1

These figures exclude the approximately 2,400 Versum Materials and Intermolecular employees who are not classified as new hires because they joined the Group as part of the acquisitions.

2

Formula for calculating the rate of new employee hires: Total number of new employee hires divided by number of employees at the end of the fiscal year.

3

Formula for calculating the rate of new employee hires by age/gender/region: New employee hires of the focus group divided by the total number of new employee hires.

Staff turnover1,2

 

 

2018

 

2019

 

20203

 

2021 Group

 

2021 thereof: Merck KGaA, Darmstadt,
Germany

Total turnover rate

 

9.09

 

9.07

 

8.22

 

10.82

 

2.37

Turnover rate by gender

 

 

 

 

 

 

 

 

 

 

Men

 

9.03

 

8.69

 

8.22

 

10.69

 

2.45

Women

 

9.18

 

9.54

 

8.22

 

11.00

 

2.22

Turnover rate by age group

 

 

 

 

 

 

 

 

 

 

Up to 29 years old

 

14.24

 

13.13

 

11.30

 

16.64

 

2.59

30 to 49 years old

 

8.53

 

8.90

 

7.74

 

10.05

 

1.95

50 or older

 

7.39

 

7.03

 

7.52

 

9.22

 

2.95

Turnover rate by region

 

 

 

 

 

 

 

 

 

 

Europe

 

5.73

 

5.72

 

5.64

 

6.00

 

2.37

North America

 

9.90

 

11.02

 

9.79

 

15.44

 

not applicable

Asia-Pacific (APAC)

 

14.51

 

13.18

 

10.60

 

14.66

 

not applicable

Latin America

 

15.41

 

13.47

 

11.40

 

12.95

 

not applicable

Middle East and Africa (MEA)

 

9.77

 

12.14

 

11.80

 

16.57

 

not applicable

 

 

 

 

 

 

 

 

 

 

 

Total number of leavers

 

4,613

 

4,863

 

4,721

 

6,354

 

201

by gender

 

 

 

 

 

 

 

 

 

 

Men

 

2,578

 

2,621

 

2,697

 

3,575

 

139

Women

 

2,035

 

2,242

 

2,024

 

2,779

 

62

by age group

 

 

 

 

 

 

 

 

 

 

Up to 29 years old

 

1,061

 

1,042

 

974

 

1,451

 

30

30 to 49 years old

 

2,649

 

2,898

 

2,677

 

3,545

 

86

50 or older

 

903

 

923

 

1,070

 

1,358

 

85

by region

 

 

 

 

 

 

 

 

 

 

Europe

 

1,457

 

1,500

 

1,490

 

1,601

 

201

North America

 

1,064

 

1,264

 

1,281

 

2,078

 

not applicable

Asia-Pacific (APAC)

 

1,468

 

1,484

 

1,394

 

2,015

 

not applicable

Latin America

 

522

 

459

 

398

 

449

 

not applicable

Middle East and Africa (MEA)

 

102

 

156

 

158

 

211

 

not applicable

1

The table contains unadjusted turnover rates. The rate excludes employees who pause due to parental leave or a long-term illness, as well as employees who are transitioning to the non-working phase of partial retirement.

2

The employee turnover rate is calculated as follows: Total number of leavers from the past 12 months divided by the average employee headcount multiplied by 100.

3

The figures do not reflect the approximately 500 Allergopharma employees, who were not included in the employee turnover rate due to the divestment of the business.

 

In 2021, the average length of service for employees Group-wide was 9.5 years (2020: 9.6 years), with 15.7 years (2020: 16.2 years) for employees of Merck KGaA, Darmstadt, Germany.

Roles and responsibilities

The Human Resources (HR) department is responsible for advising all business sectors and Group functions on matters concerning our human capital. The HR team addresses the needs of our employees, organizational topics, and company culture. Across all our sites, HR employees work together with leaders from various functions and business sectors to employ strategies to engage our people in line with Group-wide HR guidelines and requirements, including attractive compensation models and benefits. Every two to three years, we carry out internal audits to check that the guidelines are being implemented.

The Chair of the Executive Board and CEO is responsible for Group Human Resources. Our Chief HR Officer, who leads the HR function and oversees all our HR activities, including Diversity, Equity & Inclusion (DE&I), reports directly to her. Our Business Services unit oversees the operational tasks of human resources work, such as drafting contracts and payroll accounting. The Chief Financial Officer has responsibility for this unit.

The Engagement and Inclusion unit within our HR organization is responsible for employee engagement, diversity, equity, and inclusion and also develops and manages our employee surveys.

Our commitment: Group-wide policies and guidelines

We are dedicated to upholding the appropriate and fair labor and social standards stipulated in our Group-wide Social and Labor Standards Policy. It complements the provisions of our Human Rights Charter and our Code of Conduct with respect to labor and social standards. These include the fundamental Conventions of the International Labour Organization (ILO), which cover freedom of association and collective bargaining, forced labor, child labor, anti-discrimination, equal opportunity, equal pay, working hours, occupational health and safety, and the prevention of abuse and harassment. The Social and Labor Standards Policy outlines that we do not tolerate any form of discrimination, physical or verbal harassment or intolerance in the workplace. In this way, it creates the framework for fair and respectful interaction. We conduct internal audits to ensure that our local subsidiaries comply with these principles.

Performance-based pay and social benefits

To ensure a competitive compensation structure, we regularly review our compensation policy based on data analyses and benchmarks. In doing so, we take internal factors and market requirements equally into account. Before adapting our compensation structure, we consult with key stakeholders, such as employee representatives. The pay structures within our company are based on defined criteria, such as job requirements and performance. We make no distinctions based on gender or other diversity criteria.

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